Key Takeaways
- Shares of Albemarle gained shut to three% Thursday after the world’s largest lithium producer reported document annual income, boosted by new subsidiary Ketjen's gross sales.
- Gross sales at Kenjen, which it launched in January of final yr, soared 45% from a yr in the past.
- Albemarle has been damage by a hunch in demand for electrical autos, which use lithium of their batteries, and decrease lithium costs.
Shares of Albemarle (ALB) gained shut to three% Thursday after the world’s largest lithium producer reported document annual income boosted by beneficial properties in new subsidiary Ketjen and moved to chop prices.
The corporate posted fourth quarter earnings per share (EPS) of $1.85 on income of $2.36 billion, down 10.1% from a yr earlier. Each beat estimates.
Albemarle reported a forty five% bounce in gross sales at its wholly-owned subsidiary, Ketjen, which it launched in January of 2023. Ketjen offers superior catalyst options for the petrochemical, refining, and specialty chemical substances industries. It introduced in gross sales of $342 million within the interval.
The corporate additionally reported volumes at its Vitality Storage unit soared 35%, boosted primarily by the enlargement of its La Negra plant in Chile, and “increased tolling volumes to satisfy buyer calls for.” It mentioned it anticipates full-year volumes rising 10% to twenty%.
For the complete yr of 2023, the corporate’s income grew 31% from 2022 to a document $9.62 billion.
CEO Kent Masters mentioned that Albemarle is “taking actions to reinforce our monetary flexibility, whereas advancing near-term development and preserving future alternatives to create worth.”
Albemarle has been damage by a hunch in demand for electrical autos (EVs) and decrease lithium costs. In January, the corporate introduced plans to slash prices, together with lowering spending on capital tasks and contracted companies, in addition to shedding staff.
Shares of Albemarle completed 2.7% increased at $117.50 per share Thursday. Regardless of Thursday's beneficial properties, they've misplaced greater than 58% of their worth over the previous yr.
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